Experts help you navigate end-of-the-year car specials
Labor Day car deals are a few weeks away. But is waiting really the best strategy?
Labor Day is on September 7, 2015 this year. If you’re in the market for a car, you’ll find a lot of dealerships motivated to sell around that time. The weekend has been called “Black Friday for car shopping’’ by Fortune.com because it’s when dealerships are pushing to make room for new car models by offering heavy discounts on older vehicles.
But while the incentives offered on the holiday weekend might save you money, dealership inventory might be limited by the time the sales event rolls around.
“The deals could get sweeter towards Labor Day but then there will be less selection,’’ said Jessica Caldwell, director of industry analysis for Edmunds.com. “It’s a thin line to walk and the deal might not get much better if you wait.’’
Caldwell points out that buying a car ahead of the Labor Day weekend offers certain advantages, including more attention from the dealership staff who might be spread thin while dealing with other customers during this time.
“Buying a car earlier can get you more relaxation, and more selection,’’ said Caldwell.
Story continues after gallery
July car incentives from Consumer Reports
[bdc-gallery id=”1424215″]
Jeff Bartlett, deputy auto editor for Consumer Reports, points out an often overlooked factor for consumers to consider. Because Labor Day is the end of the 2015 model year, a new car bought will depreciate by a full year’s worth “almost immediately.’’
“Depreciation is a huge hidden cost that hits you in the face when you trade in your car,’’ said Bartlett. “If you save $1,000 on car and it depreciates by $2,000, you’re not coming out ahead.’’
Bartlett also warns the climate of car-shopping incentives and rebates on Labor Day Weekend could draw consumers’ attention “away from more practical considerations’’ by causing them to focus too much on the offers instead of the vehicles they will be driving.
“Buyers will prompted to choose the deal, not car,’’ said Bartlett. “Because a car is something you will own for many years you want to make a good decision, one you’ll be happy with in the long run.’’
“The key is for consumers to be aware of the impact of their choices, and to purchase cars based on performance, safety, and reliability, rather than just purchase-price savings,’’ he said.
Caldwell believes consumers who know what kind of car they want should not wait until Labor Day because the car might be gone by then.
“When you need a car, you need a new car and you can’t wait two months,’’ she said. “It’s important to look at deals on that specific car but the deals could be the same on that day and then you’ve waited two months for nothing.’’
Bartlett points out an added bonus of not waiting to go car-shopping on Labor Day weekend? Not having to spend a holiday weekend at a dealership.
“Why wait until Labor Day to spend part of your three-day weekend at the dealership? That’s the last place you’d want to spend a vacation,’’ he said. “But if you get going before, you might get more dealership attention.’’
To comment, please create a screen name in your profile
To comment, please verify your email address
Conversation
This discussion has ended. Please join elsewhere on Boston.com